Papua New Guinea

Investment & 
Operational
Climate

PNG is the largest economy among the Pacific Islands and offers enormous trade and investment potential. Key investment prospects are in infrastructure development, a growing urban-based middle-class market, abundant natural resources in mining, oil and gas, forestry, and fisheries. Under the banner of “Take-Back PNG,” Prime Minister James Marape’s government endorsed a fair, open, and collective approach in its decision-making processes, especially decisions concerning the proper management of the country’s resources and investment returns. Hoping to distance itself from a history of poor business and investment trade-offs that eventually triggered the ouster of Prime Minister Peter O’Neill in May 2019, Marape also announced that the government would increase its share of revenues from the country’s resources. Under Marape, PNG reaffirmed its openness to trade and investment, is stepping up reforms to recover from high debt levels, and seeks to attract more FDI to stimulate its economy. However, the Marape Administration’s inability to reach agreement with multinational companies in the resources sector has cast a shadow over this strategy.